Using the data in table 12.2, consider the new equilibrium income and interest rate for the following changes, assuming no sterilisation, constant prices and a fixed exchange rate. Draw each situation and the likely path to the new equilibrium.

(i) Rise in a from 43.5 to 50.0.

(ii) Fall in IR (hence fall in the money supply) from 3 to 2.

(iii) Devaluation of the exchange rate from 1.764 to 2.